This paper examines the restructuring of state assets in markets deregulated by privatizations and investment … liberalizations. We show that the government has a stronger incentive to restructure than the buyer: A firm restructuring only takes … into account how much its own profit will increase. The government internalizes that restructuring increases the sales …

debt restructuring that captures key facts of sovereign debt and restructuring episodes. While debt dilution pushes for … extensions upon restructurings: income recovery after default, credit exclusion after restructuring, and regulatory costs of book …